5/24/2010 @ 3:00PM

IBM Sees Sparkle In AT&T's Sterling

IBM
and
AT&T
announced today they have entered into a definitive agreement for
IBM
to acquire Sterling Commerce from
AT&T
for about $1.4 billion in cash.

Sterling Commerce is a business solutions technology company.

IBM
said the acquisition will expand its ability to help organizations create more dynamic business networks by automating the way they connect with customers, partners and suppliers.

The transaction is expected to close in the second half of 2010, subject to regulatory approval.
AT&T
said it will record a one-time pretax gain of $750 million in the quarter in which the transaction closes.